Canada's government announced on Tuesday (25) a new round of retaliatory tariffs against the United States, with rates of 15%, 25% and 50% on about 700 American products. The measures, valued at C$ 27.6 billion (about US$ 20 billion), take effect on September 8 and answer the 50% tariffs imposed by Donald Trump's administration on US$ 20 billion in Canadian goods, in force since Saturday (22), according to G1.
According to a Canadian government official cited by Reuters, the highest rate, 50%, will fall on steel, aluminum, furniture and apparel. Cheese, home appliances and some seafood imported from the US will be taxed at 25%, while electronics and tools will face a 15% tariff. Ottawa says the list was designed to pressure the United States while limiting the impact on Canadian consumers and businesses.
Finance Minister François-Philippe Champagne said that "the dollar-for-dollar value of the counter-tariffs, along with a multibillion-dollar support package, will protect workers, farmers, families and businesses." The package totals C$ 7.5 billion in support for small and medium-sized companies, cash-flow financing and aid for workers affected by the tariffs. In an interview with BBC Brasil, the Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, struck a defiant tone: "We are ready to make a good deal, but we will not accept a bad deal. We will not give in, we will not back down, we will build."
Escalation after talks collapse
The retaliation was announced after trade negotiations between the two countries collapsed. On Monday (24), Trump raised the pressure by announcing 50% tariffs on cars, trucks, auto parts and steel imported from Canada, set to take effect on January 1, 2027. To support the new duties, the US president turned to Section 338 of the Tariff Act of 1930, a mechanism never before used by an American president to impose tariffs, according to the New York Times. Trade specialists say the unprecedented use of the rule could be challenged in court.
Despite the firm tone, the Canadian government left strategic sectors for the US economy, such as energy and potash, out of the retaliation for now, BBC Brasil reported. On Saturday (22), Prime Minister Mark Carney noted that Canada supplies most of US natural gas and electricity imports and about 60% of its crude oil imports. Ontario Premier Doug Ford said a surcharge on energy exports "is being considered" and declared: "President Trump underestimates us, and that is his biggest mistake."
The trade dispute began in early 2025, when Trump imposed 25% tariffs on most Canadian imports and 10% on energy products, citing the fight against drug flows and illegal immigration. Canada responded at the time with 25% tariffs on about C$ 30 billion in American goods and later expanded its retaliation. Today, Canada sells about 70% of its exports to the United States and is the top customer of 26 US states, including Maine, Michigan and Wisconsin. According to an estimate by economist Trevor Tombe cited by G1, keeping the 50% US tariffs in place could put more than 87,000 jobs at risk in Canada.